BEL aims for Rs 20,300 crore turnover in 2023-24, fueled by growing indigenous product demand

Bharat Electronics Limited (BEL), a government-owned enterprise, has established an ambitious goal of achieving Rs 20,300 crore in the fiscal year 2023-24. This growth target is attributed to the increasing demand for indigenous products, which has been propelling the company's expansion. Bhanu Prakash Srivastava, the Chairman and Managing Director of BEL, conveyed this during an interview with PTI. As of August 1 of the current year, the order book of this 'Navratna' PSU (Public Sector Undertaking) under the Ministry of Defence stands at approximately Rs 64,800 crore.

In a move to tap into international markets, BEL has strategic plans to establish marketing offices in countries such as Brazil, Armenia, and Kazakhstan. The company is eyeing export sales of USD 90 million for the upcoming financial year. This drive for growth is underscored by BEL's turnover of about Rs 17,300 crore in the previous financial year, marking a growth of 15 percent.

Srivastava emphasized the close interconnection between the defense business of any nation and its government policies, which are influenced by factors such as geopolitical dynamics, security threats, and economic progress. The Indian government's emphasis on self-reliance and restrictions on the import of specific defense equipment is anticipated to amplify the demand for domestic products and services in the defense sector.

By allocating approximately six to seven percent of its turnover to research and development, BEL is committed to enhancing indigenization and value addition. This concerted effort has led to a significant proportion of the turnover—around 70 to 80 percent—being generated from indigenous products.

The company's core areas of business encompass both defense and non-defense segments. BEL is actively pursuing export opportunities for its products in these domains. The company has already established overseas marketing offices in various countries, including Vietnam, Sri Lanka, Oman, the United States, Singapore, and Nigeria.

BEL's growth trajectory is further bolstered by capital expenditure investments, infrastructure development, and strategic partnerships with niche companies, including startups and micro, small, and medium enterprises (MSMEs). Major orders anticipated by BEL in the fiscal year 2023-24 span various categories such as 'Buyer Nominated Equipment for Ships,' 'Long Term Electronic Fuzes for Ammunition,' Radars, Tank Upgrade products, and Electronic Warfare Systems for Ships.

The defense sector continues to be BEL's primary revenue source, contributing approximately 85 percent of its revenues. Key growth drivers within the defense sector include radar and missile systems, communication and network-centric systems, anti-submarine warfare and sonar systems, tank electronics, gun upgrades, electro-optic systems, and electronic warfare and avionics systems.

In the non-defense arena, BEL identifies opportunities in sectors such as Electronic Voting Machines (EVMs), homeland security, and Smart City projects. The company's strategic focus encompasses entering new markets and addressing emerging areas within both defense and non-defense sectors.

BEL's endeavors in the defense sector span a wide range, including missile systems, seekers, arms and ammunition, unmanned systems, airborne radars, next-gen solutions for night vision devices, Inertial Navigation Systems (INS), directed energy weapons, and more. In the non-defense sector, BEL is exploring solutions for civil aviation, anti-drone systems, space/satellite electronics, satellite communication services, solar business, railway and metro solutions, homeland security, smart meters, and medical electronics.

This comprehensive outline underscores BEL's ambitious growth plans, strategic initiatives, and the diverse sectors it operates in. If you have any specific inquiries or require further elaboration on particular aspects, feel free to inquire!

With inputs from PTI